My Swing Trading Strategy

I didn’t add any new positions yesterday as the market didn’t show much willingness to make any meaningful move. I will look to add one or two new positions today. 

Indicators

  • Volatility Index (VIX) – Less than a 1% drop yesterday, and continued consolidation over the last five trading sessions. The 50-day moving average is still holding strong but could see a test today. 
  • T2108 (% of stocks trading above their 40-day moving average): A non-move yesterday. Still under-performing the broader move in the index which means much of the market’s move is taking place with a handful of large companies. Small caps have yet to participate to the same degree as large caps. 
  • Moving averages (SPX): SPX currently trading above all of its major moving averages. Tested and held the 5-day and 50-day moving averages. 
  • RELATEDPatterns to Profits: Training Course

Sectors to Watch Today

Worth noting yesterday that your defensive stocks rallied the market yesterday – Utilities, Real Estate and Staples with Healthcare wedged in between. Energy took a huge spill yesterday and the primary source from yesterday’s weakness. However, you can expect a bounce today with the oil tankers being attacked in the Gulf of Oman. Technology has pulled back the last two trading sessions, and testing its 5-day moving average while facing resistance overhead with the 50-day MA. 
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My Market Sentiment

Two-day pullback has price sitting on the 5-day and 50-day moving averages and ready to bounce. Volume on the pullback has been very light and looking to bounce towards the market all-time highs.  

S&P 500 Technical Analysis

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Current Stock Trading Portfolio Balance

  • 30% Long

Recent Stock Trades – See My Past Performance Here.